Replacement or Refund.
If during the term of the express warranty or within one
year from the date of delivery of the motor vehicle to the original owner,
whichever period terminates first, the manufacturer, distributor, dealer,
or repairing agent is unable to conform the motor vehicle to an applicable
express warranty after a reasonable number of attempts, the manufacturer
or distributor shall accept the return of the nonconforming motor vehicle,
and, at the owner's option, shall replace the nonconforming vehicle with a
new, comparable vehicle or shall refund the full purchase price to the
owner less a reasonable allowance for the use of the motor vehicle from
the time it was delivered to the original owner. A refund under this
section shall be made to a lien holder of record, if any, and the owner,
as their interests may appear.
Notice By Owner.
In order to claim a refund or replacement
under AS 45.45.305, the owner shall give written notice by certified mail
to the manufacturer and its dealer or repairing agent at any time before
60 days have elapsed after the expiration of the express warranty or the
one-year period after the date of delivery of the motor vehicle to the
original owner, whichever period terminates first, (1) stating that the
vehicle has a nonconformity; (2) providing a reasonable description of the
nonconformity; (3) stating that the manufacturer, distributor, dealer, or
repairing agent has made a reasonable number of attempts to conform the
vehicle; and (4) stating that the owner demands a refund or replacement
vehicle to be delivered on the 60th day after the mailing of the written
notice. Within 30 days after receiving the notice required by this section
the manufacturer may make a final attempt to conform the vehicle before a
refund or replacement is made under AS 45.45.305.
AS 45.45.315. Exceptions.
An owner may not receive a refund or
replacement under AS 45.45.300 - 45.45.360 if the manufacturer or
distributor shows that the nonconformity complained of:
(1) does not substantially impair either
the use or the market value of the motor vehicle; or
(2) is the result of alteration of the motor
vehicle by the owner or a person other than a dealer or repairing agent
that is not authorized by the manufacturer or distributor; or abuse or
neglect by the owner or a person other than the dealer or repairing agent.
AS 45.45.320. Presumption.
A presumption that a reasonable number of
attempts have been made to conform a motor vehicle under an applicable
express warranty is established if:
the same nonconformity has been subject to repair three or more times by
the manufacturer, distributor, dealer, or repairing agent during the term
of the express warranty or the one-year period after delivery of the motor
vehicle to the original owner, whichever period terminates first, but the
nonconformity continues to exist; or
(2) the vehicle
is out of service for repair for a total of 30 or more business days
during the express warranty term or the one-year period referred to in (1)
of this section, whichever period terminates first; any period of time
that repairs are not performed for reasons that are beyond the control of
the manufacturer, distributor, dealer, or repairing agent is excluded from
the 30-day time period referred to in this paragraph.
AS 45.45.325. Parts Availability.
A manufacturer whose vehicles are sold in the
state through an authorized dealer shall provide its dealer or repairing
agent with any part necessary to make a repair of a nonconformity covered
under an express warranty, as soon as possible, without additional charge
for freight or handling, if the part is not in the dealer's or agent's
inventory when the nonconforming vehicle is brought to the dealer or
repairing agent for repair.
AS 45.45.335. Resale Without Disclosure Prohibited.
A motor vehicle returned under AS 45.45.305
may not be resold by the manufacturer or distributor in the state unless
full disclosure of the reason for the return is made to the prospective
buyer before the resale is concluded.
AS 45.45.340. Other rights and remedies.
The provisions of AS 45.45.300 - 45.45.360 do
not limit other rights and remedies that may be available to the owner of
a motor vehicle under other provisions of law. This section does not
create a new cause of action against a dealer or repairing agent who sells
or attempts to repair a motor vehicle found to be nonconforming under AS
45.45.300 - 45.45.360.
AS 45.45.345. Repair Facilities.
A manufacturer or distributor or motor
vehicles who authorizes the sale of the manufacturer's or distributor's
motor vehicles in the state shall maintain authorized dealership
facilities within the state that are able to perform the service and make
the repairs required by the manufacturer's express warranty and by AS
45.45.300 - 45.45.360.
AS 45.45.350. Reimbursement of Shipping Costs.
A manufacturer or distributor who accepts the
return of a nonconforming motor vehicle under AS 45.45.305 shall reimburse
the owner for any reasonable cost incurred in shipping the vehicle to and
from the nearest authorized facility for warranty service and repair of a
nonconformity that causes the return of the vehicle.
AS 45.45.355. Arbitration or Mediation.
If a manufacturer or distributor has
established an informal dispute settlement procedure that substantially
complies with the requirements of 16 C.F.R. 703, as that section may be
amended, or if the manufacturer or distributor, after receipt of notice
required by AS 45.45.310, offers in writing to participate in an
arbitration or mediation process with the owner and the arbitration or
mediation decision is binding on the manufacturer or distributor but not
on the owner, and if the informal dispute settlement or arbitration or
mediation process is approved by the attorney general, the provisions of
AS 45.45.305 concerning refund or replacement or AS 45.45.350 concerning
shipping costs do not apply to an owner who has not first resorted to the
informal dispute settlement procedure or arbitration or mediation process.
AS 45.45.360. Definitions.
Definitions in as 45.45.300
"dealer" means a person who has obtained a franchise from, or is
authorized by, a motor vehicle manufacturer to engage in the retail sale
and warranty repair of the manufacturer's new motor vehicles in the state;
"distributor" means a person who is authorized by a manufacturer to engage
in the wholesale distribution of the manufacturer's new motor vehicles in
warranty" or "warranty" means an express written warranty provided by the
manufacturer of a new motor vehicle;
purchase price" means the total price paid for a motor vehicle by the
original owner, including costs added to the retail price, such as
original registration fees, transportation fees, dealer preparation, and
dealer installed options;
"manufacturer" means a person who by labor transforms raw materials and
component parts into motor vehicles for wholesale or retail sale;
vehicle" or "vehicle" means a land vehicle having four or more wheels,
that is self-propelled by a motor, is normally used for personal, family,
or household purposes, and is required to be registered under AS 28.10;
but does not include a tractor, farm vehicle, or a vehicle designed
primarily for off-road use;
"nonconformity" means a defect or condition in a motor vehicle caused by a
manufacturer, distributor, dealer, or repairing agent that substantially
impairs the use or market value of a vehicle;
means a purchaser, other than for resale, of a new motor vehicle, and a
person to whom ownership of the motor vehicle is transferred in conformity
with AS 28;
allowance" means an amount attributable to an owner's use of a motor
vehicle; a "reasonable allowance" may not exceed an amount equal to the
depreciation in value of the vehicle for the period during which the
vehicle is available for use by the owner, calculated by a straight line
depreciation method over seven years, plus an amount equal to the
depreciation in value of the vehicle that is caused by any neglect or
abuse by the owner; or body damage not caused by a nonconformity;
agent" means a person who has been specifically authorized by a motor
vehicle manufacturer or distributor to perform warranty repairs in the
state on one or more of the manufacturer's or distributor's motor
"substantially impairs the market value" means a nonconformity that
substantially decreases the dollar value of a vehicle to the owner when
compared to the dollar value of a similar vehicle that does not have the
"substantially impairs the use" means a nonconformity that prevents a
motor vehicle from being operated or makes the vehicle unsafe to operate.
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